Before dismissing this concept take note that many have spoken of this and Hugo Salinas here mentioned sees it as the solution. Take note that Hugo Salinas is not just some opinionated economist; he is one of the wealthiest persons on the planet. His son Ricardo now runs his business (here).
Reading Salinas' below article will help understanding how worthless the US Dollar has become thus making the real value of Gold ridiculously low. It is only during the past four decades that Americans have been brainwashed with the stupid concept that worthless paper is wealth and Gold and Silver which have been real wealth for over 5,000 years are worthless relics. "Early civilizations equated gold with gods and rulers, and gold was sought in their name and dedicated to their glorification."
Salina's original article is in Spanish; the links contain the original Spanish format and translation to English.
In 1971 the United States without warning stopped the conversion of the US Dollar with Gold. By the same token the US could revalue the Dollar against Gold at any given time and at any given price. Revaluation of Gold would be accompanied by revaluation of Silver. This is a logical way of eliminating the world's debt which any rational person can agree that it can never be honored or stopped from growing. Salinas' article on $50,000 Gold:http://www.silverdoctors.com/hugo-salinas-price-revaluation-of-gold-coming-gold-price-to-50000-per-ounce/
The US existing debt is in Dollars which is the currency in which this debt is guaranteed with. Repricing the Dollar against Gold makes everyone owning sufficient gold capable of honoring their debt. The US claims to hold 8,133 tonnes. Many countries have been purchasing gold and expanding their gold reserves; especially China and Russia (here). They are doing this for a reason. If gold is revalued against the Dollar debt can be written off and the Dollar put to rest and then replaced with a new currency supported with real money (Gold). Even if one chooses to dismiss what other nations are doing it would be hard to dismiss the reason why JP Morgan has accumulated hundreds of millions of Silver Eagles. Wouldn't you think that JP Morgan knows something that the rest do not know and has done it for a reason?
All debt can be settled in worthless Dollars once revalued against Gold. There are many implications to this but what other choice is there if the existing debt cannot be paid and would otherwise ultimately end in default. By the same token many assets held in US Dollars such as bonds, retirement accounts, pensions and 401k accounts could evaporate. If you have $250,000 in the bank and the conversion is made at a 10/1 ratio your FDIC guaranteed money could shrink to $25,000 when exchanged into the new currency. Those holding Gold and Silver would see no loss in their assets.
A very important but ignored aspect of devaluing the Dollar against Gold is personal debt. Just as in the example above with shrinkage of Dollars in a savings account your home mortgage would suffer the same fate. A $250,000 debt on a 10/1 ration exchange would become a debt of $25,000. In other words if you are holding Gold and Silver you could pay off your mortgage with a small amount of either.
Gold repricing is only one way of resolving the problem of a world carrying a debt that it cannot bear much longer. This of course although not the only alternative would be a much better option than a WWIII that would evaporate untold lives along with debt and wealth.
The best way to illustrate the ignorance of Americans on this subject is the never failing comparison of Hitler restricting gun ownership of Germans. Hitler actually loosened gun ownership laws in Germany. Gun ownership was restricted on Jews whose loyalty was not trusted after the world's Jewish community declare war on Germany with a boycott of German products in 1933. There is an abundance of information on this subject that verifies it.
After this event the loyalty of Jews in Germany was as trusted as the loyalty of Japanese Americans who were thrown in concentration camps and detained until the end of WWII. Rest assured that had American being bombarded every day, had been losing the war and had no food to feed its people those 200,000 interned Japanese would have starved to death. Learn true history and you will live in the truer world.
The best promoter of gun sales and profits for the US gun industry is the rhetoric of gun control. Every time a politician or the media speak of gun control Americans already owning 10 guns stockpiling thousands of rounds of ammunition buy two more guns and another two thousand rounds. Actually it has become some kind of joke and an addiction. Americans are not only armed to their teeth but also possess enough of them to in the future arm those who now object owning guns and may eventually see the need to do so.
There are 300 million guns in the hands of Americans and enough ammunition to take on the world several times. The rhetoric from both side of the argument have become a farce and comical event while the gun industry stimulates the economy and rack up the profits. Americans do not need anymore guns, they will never turn them in or pay taxes and insurance on them; they would just simply hide them if it was attempted.
Where is the political candidate that will tackle corruption?
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